Which among the following was a Navratna company in the year 2021?

Correct option is B

The correct answer is (c) REC Limited

Explanation:

• REC Limited was a Navratna Central Public Sector Enterprise (CPSE) throughout the year 2021.

• REC Limited functions under the administrative control of the Ministry of Power.

• The company was established in 1969 and primarily finances power sector and infrastructure projects.

• REC Limited was upgraded from Navratna to Maharatna status on 21 September 2022.

• In 2021, it was one of the prominent Navratna companies in India’s power financing sector.

Information Booster:

• Maharatna companies enjoy greater financial autonomy than Navratna companies.

• A Maharatna company can invest up to ₹5,000 crore or 15% of its net worth in a single project without government approval.

• A Navratna company can invest up to ₹1,000 crore or 15% of its net worth without prior government approval.

• To become a Maharatna company, a CPSE must already hold Navratna status.

• Navratna status is granted to Miniratna Category-I companies scoring at least 60 out of 100 on specified financial and operational performance parameters.

• The six Navratna evaluation parameters include Net Profit to Net Worth, EPS, PBDIT to Turnover, PBDIT to Capital Employed, Manpower Cost efficiency, and Inter-Sectoral Performance comparison.

• Maharatna companies are required to have substantial turnover, profit, net worth, and significant global presence.

• Both Maharatna and Navratna companies must be listed on Indian stock exchanges with prescribed public shareholding norms.

Additional Knowledge:

Oil and Natural Gas Corporation (Option a)

• ONGC is a major public sector oil and gas company in India.

• It received Maharatna status in 2010.

• Therefore, it was not a Navratna company in 2021.

Hindustan Petroleum Corporation Limited (Option b)

• HPCL is a public sector petroleum and natural gas company.

• It was upgraded to Maharatna status in October 2019.

• Hence, it did not hold Navratna status in 2021.

Indian Oil Corporation Limited (Option d)

• IOCL is India’s largest government-owned oil refining and fuel retail company.

• It has long held Maharatna status.

• Therefore, it was not categorized as a Navratna company in 2021